Teachers in week 2 and 3:

Course secretary, matters of registration & administrative character:

Elna Jnsson, 046-2220576, elna.jonsson@circle.lu.se

LOCATIONSTeaching the first three weeks mainly in the Maths house Slvegatan 18 The following 4 weeks in CIRCLEs new location at Slvegatan 16 (MNO-house) Mondays 10-12: Lecture Tuesdays 13-15: Lecture Wednesdays/Thursdays 10-15: Seminar

LOCATIONSMNO-house

CIRCLE

COURSE AIMS...(1) to provide students with fundamental knowledge of the phenomenon of innovation and innovation processes in capitalist economies from the perspective of firms and industries; (2) to enable students to use basic theoretical tools that help analyse and manage real-world processes of innovation; (3) to enhance students appreciation of the importance of understanding innovation-related issues for the development of businesses, industries, countries and citizens.

WEEK 1-5 Mondays and Tuesdays: Lecture Thursdays (one Wednesday): intensive seminar The seminar is strongly compulsory Active participation expected Assignments to be handed in before the seminar Seminar may include presentations etc.

LAST 2 WEEKS Sixth week: Mainly reserved for writing the home exam. One lecture on the Monday (and Tuesday if you need it) with room for questions.

Seventh week: Examination presentation and discussion in small groups (5-6 people) of the final essay (which is a part of the home exam).

EXAMINATIONYour progress and learning is assessed not only at the end of the course but throughout the entire course. Different forms of examination are used to gauge students progress: 1. Weekly written assignments in preparation for seminars 2. Formal presentations at seminars 3. Home exam, including final discussion seminar The home exam is the more important of the three.

About the grading

The seminar assignments are not graded, but you have to hand them in otherwise you will not get a grade on the course The first part of the home exam determines half of your grade The second half of the home exam determines the second half of the grade

Home exam The first part is a number of short questions relating to the course literature. These questions will be handed out on Monday of the sixth course week (October 1st) The second part is a more open essay: students are asked to select a specific firm (or other organization) of their own choice and then relate the firm and its innovation activities to a number of more specific issues that have been taken up in the course literature and in teaching.

Questions for the second part of the home exam

What types of innovation does the firm (not) concentrate on? Does it seem to be successful in its innovative activities? Why (not)? To which technological trajectory does the firm belong? How would you characterise the firms innovation strategy? What parts of the firm seem most important for innovation to be successful in the firm? Does the firm use external collaboration to enhance its innovations? If so, what types of collaboration, and why exactly those forms? And what types of partners? What type of competition is threatening the survival of the firm on the short and the long term? Does the firm use corporate ventures, and if so, of what type are they? In what stage of development is the industry in which the firm is active? What type of market (international?, local?, mass market?, niche market?) is at focus? Are there any institutional regulations or other political developments that are particularly important influencing the innovation activities of the firm? And how does the firm itself try to influence political developments?

What is expected from you?

You can choose between width and depth answer several questions or just a few You are not expected to answer all questions neither to do so in detail Specify the questions you are addressing 2 000 words per part in sum 4 000 words (approximately 8 pages) A LTH grade is given U, 3, 4, 5

Note the following about plagiarism

Copying text from someone else without using quotation marks and citing the source is considered plagiarism. For the home exam, there are no requirements of listing your references (however, this may show that you have found adequate resources), but you MUST USE quotation marks and list the source if you quote (you are not allowed to just copy text)! If you violate this rule you may be reported! I will check for plagiarism. If there is anything unclear about this, dont hesitate to contact me

Joe Tidd John Bessant Keith Pavitt

ISBN 0470093269

Todays contents Course outline The role of innovation What is innovation? What is innovation management? Models of the innovative process

Chapter 1: Key Concepts in Innovation Management

The aim of innovation... Depends on the type of firm Goal is mostly to survive, to grow, to make profit R&D departments generally strive for the best technical solution... ... but what matters for innovation is how it influences survival chances, profit and growth opportunities!

Innovation and the corporate strategy

Innovation management.....

has to be understood as a core process of the organisation -> It is related to what is being produced Is a long term race

Is about continuity Has to deal with complexity!! Is about being systematic developing routines around innovation

WHAT IS INNOVATION? Invention Technology Innovation Creating new or improved products, processes and services Knowledge and learning Uncertainty

Schumpeters distinction between Invention and innovation

An invention is an idea, a sketch or model for a new or improved device, product, process or system. It has not yet entered to economic system, and most inventions never do so. An innovation is accomplished only with the first commercial transaction involving the new product, process, system or device. It is part of the economic system.

Dimensions of Innovationthe 4Ps of innovation Product innovation: changes in the things (products or services) which an organization offers Process innovation: changes in the ways in which they are created an delivered Position innovation: changes in the context in which the product or services are introduced Paradigm innovation: changes in the underlying mental modes which frame what an organization does

According to the degree of codification: Information to tacit knowledge

Patents & copyrights

Trade secrets Shared expertise

Source: David y Foray (1994)

Triggers of discontinuity New market emerges New technology emerges New political rules emerge Running out of road Change in market sentiment or behaviour Deregulation or reregulation Fractures along fault lines Unthinkable events Business model innovation Shifts in techno-economic paradigm Architectural innovation

Important contextual factors

Type of sector Size of firm The country and region The stage in the industry life cycle Political regulations

Abernathy & Utterback industry life cycles

The fluid phase co-existence of old and new technologies rapid improvement of both the sailing ship effect Target: What product and what market? Technical: What product who will produce it ? Experimentation

Important contextual factors

Globalisation Sustainability Networking organisation

The transitional phase

A dominant design Convergence around one design Rolling bandwagon innovation channeled around a core set of possibilities a technological trajectory

Figure 1.4 Component and architectural innovation

2005 Joe Tidd, John Bessant and Keith Pavitt

Repetition Chapter 1Innovation: Depends on the type of firm, sector, industry life cycle, country and so on Depends on the environment Goal is mostly to survive, to grow, to make profit Technical solutions vs. societal and organisational aspects Different from invention

Innovation management Core process

Production Commercialisation design, marketing, resources, competence

Long term Continuity Complexity Systematic, routines

New factors affecting innovation

Globalisation Sustainability Networking organisation

Chapter 2: The innovation management process

Evolving models of the innovation process Can we manage innovation? Introducing the concepts of Organizational Routines or Capabilities Specify the different phases of the innovation process How context affects innovation

Second generation (mid 60s-70s): Demand pull

3rd generation model

Research

Knowledge

Potential market

Invent and/or produce analytic design

Detailed design and test

Redesign and product

Distribute and market

: Direct link to and from research from problems in invention and design I : Support of scientific research by instruments, machines, tools S : Support of research in sciences underlying the product areas

5TH generation model

Innovation processes generation model

Relevance of external sources of knowledge firms do not innovate in isolation Related to Innovation System concept Focus on networking Still strong emphasis on R&D and formal knowledge (ICT)

6th generation of innovation processes

Revolve around knowledge and learning Networks embrace all knowledge types, not only R&D. Most innovative firm is the one that learns fastest It is the use of knowledge that makes the competitive difference, and creates the advantage

Table 2.2 Rothwells five generations of innovation models

2005 Joe Tidd, John Bessant and Keith Pavitt

Innovation modelsSO, WHICH ONE IS RIGHT? A fast food restaurant chain? An electronic test equipment maker? A hospital? An insurance company? A new entrant biotechnology firm?

Can we manage innovation?

The majority of failures are due to some weakness in the way the innovation process is managed. Technical resources (people, equipment, knowledge, money, etc.) Capabilities in the organization to manage them

Organizational routines or capabilities are the way we do things around here (in this organization) as a result of repetition and reinforcement Routines are firm-specific and must be learned. To manage innovation means to create an organisation where routines can be learned as to cope with the complexity and uncertainty of the innovation process Unlearning is important

The innovation management process

Searching looking for threats and opportunities for change within and outside of the organisation. Technological opportunity Changing requirements on the part of the market Selecting deciding (strategically from how the enterprise can develop and taking into account risk) what to respond to. Flow of opportunities Current technological competence Fit with the current organizational competence

Implement turn potential ideas into a new product or service, a change in process. Acquiring to combine new and existing knowledge (available within and outside the organization) to offer a solution to the problem Executing to turn knowledge into a developed innovation and a prepared market ready for final launch Launching to manage the initial adoption Sustaining to manage the long term use

In the implementation phase

Learning to learn from progressing through this cycle so that they can build their knowledge base and can improve the ways in which the process is managed. Restart the cycle Failure why? Refine, improvement next generation Learning about technology, routines & organization

Figure 2.1 Simple representation of the innovation process

2005 Joe Tidd, John Bessant and Keith Pavitt

Almost the same - again

Almost the same - again

Activities Scanning environment for technological, market, regulatory and other signals Collect and filter signal from background noise Scan forward in time Process signals into relevant information for decision making

Almost the same - again

FOCUS

Definition: Selection of the various market and technological opportunities.

Inputs: (1) the flow of signals coming from the previous phase (2) the current technological base of the firm (3) the fit with the overall business strategy.

Almost the same - again

RESOURCE

Definition: Combining new and existing knowledge to offer a solution to the problem.

SEMINAR ASSIGNMENT WEEK 1

Give examples from the real world of a firm that has been successful at innovation a firm that has failed to innovate successfully

What, would you say, might be the most important difference between the successful and the unsuccessful firm? Please hand in half a page or one page or so, and bring a print-out of your answer with you to the seminar! (The assignment will not be graded, but you have to bring it with you to the seminar in order to participate!)

How to select firms

See separate sheet for guidelines You could: a) Follow one firm over the entire course- Of course, you should be able to cover many aspects of innovation using this case

b) ...or switch firm based on the assignment

- Note! Doing this too often may take a lot of time!

You dont have to decide now... ...however, a recommended strategy is that you choose case(s) with enough richness to cover several aspects of innovation